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Suleiman Kiggundu

 Ph.D,  Boston University;




Managing Director of The Greenland Bank Limited (GBL)
removed by the Central Bank of Uganda on December 6, 1998.

Governor of the Central Bank of Uganda  

Professor of economics,


Tuesday, April 13, 1999

Sacked director  to sue Uganda's  Central Bank 
The former managing director of the closed Greenland Bank, Dr
Sulaiman Kiggundu, is considering legal action against the Central Bank of Uganda over his removal from office and the closure of the bank. Dr Kiggundu, who is also a former central bank governor, has blamed Finance Minister Gerald Sendaula and Bank Governor Charles Kikonyogo for the recent statements against him. He said his image and that of the bank had been tarnished by the recent events surrounding the Greenland Bank. "My reputation is the most important asset and not riches which I don't have," the banker told newsmen at his residence in Kampala. Dr Kiggundu claimed that since July, he and the bank's board of directors had sought audience with the finance minister in vain. He said his removal from the post was illegal as the central bank governor had no powers to remove a bank's managing director. All he could do was initiate legal proceedings for such action. He said the central bank was fully responsible for the closure of the bank. President Museveni on Sunday assured the bank's depositors that they would be paid their money in full.



Bank of Uganda News and Adverisements

KAMPALA, 19 April 1999      PRESS RELEASE

The Greenland Bank Limited (GBL) Closure

Tit has been found necessary to issue a public statement to correct the distorted impressions generated by a press release issued by Dr Sulaiman Kiggundu, former Managing Director of GBL. His statement creates a false impression that GBL was a sound and well-run bank that was ruined by Bank of Uganda's intervention, which ultimately led to its closure.
Background to the current issues of GBL
In July 1998 Bank of Uganda carried out an audit of Greenland Bank Limited. ....
 The bank did not follow its laid down lending policy. As a result, much credit had been extended to a small group of borrowers mainly insiders and Greenland Group related companies, generally without sufficient security and in violation of limits on concentration of lending..... It was discovered that in some cases credit had been extended on the sole instruction of the then Managing Director and without any or very minimal documentation. A substantial portion of the loan portfolio was classified as non-performing as both principal and interest payments were in arrears for a considerable time. ...

Memorandum of Understanding

Following these recommendations, Bank of Uganda concluded a Memorandum of Understanding on September 30th 1998 with Greenland Bank Limited. The memorandum required the bank to put its operations on a sound footing, by June 1999..... The bank had failed on most of the deadlines for November 1998 before BOU took action on December 6th, 1998.

The status of GBL as at December 6, 1998
At the time of removing the Managing Director and the Board, on December 6, 1998, the bank was in a crisis and had reneged on its undertakings in the September agreement....
Insider Lending
The terms of the agreement required the bank to have reduced insider lending from 55% of total credit to 25 percent by November 1998. The report of November 30, 1998 revealed that insider loans accounted for over 40 percent of the gross loan portfolio. .......

Off balance sheet transactions
At the time of handing over, Dr Kiggundu admitted having made huge investments (shs.37billion) mostly in related companies without disclosing these in the books of the bank. In addition, Dr Kiggundu had secretly solicited for substantial deposits (shs.20billion) which were kept out of the financial statements of the bank.
Management by BOU
Dr Kiggundu's statement, claims that the BOU stint in the management of GBL has ruined the bank through failure to attract depositors and avoiding lending to generate income. BOU appointed management has been in the bank for 4 months only and was led by a highly efficient, seasoned and experienced banker. ....




Dracula Taking Over Uganda's Blood Bank?

Monitor (Uganda)

July 31, 2001

The revelations by former Greenland Bank Managing Director Suleiman Kiggundu are shocking.
In short, Kiggundu claimed that President Yoweri Museveni, Bank of Uganda officials including the late Governor Charles Kikonyongo, the whole Ministry of Finance beginning with then Finance minister Jehoash Mayanja, then Attorney General Bert Katureebe, Museveni's younger brother Maj. Gen. Salim Saleh and his son Lt. Kainerugaba Muhoozi, and the Privatisation Unit discussed at length the controversial sale of Uganda Commercial Bank in an underhand way to the Malaysian firm Westmont.
That all these people in effect agree to a deal that was all but a looting of the country's largest bank, and plotted to hide the facts from the owners of the bank - the Ugandan people.
When the scandal was blowing over, and donors were getting angry, Maj. Gen. Saleh stepped forward to take the blame personally in order to deflect the blame from the government; and Kiggundu became the sacrificial lamb.
Even if only one tenth of what Kiggundu alleged is true, it raises very troubling about the government's moral right to govern. In addition, it shows that the reason official corruption remains pervasive, is that there is no serious commitment at the top to deal with, and in fact some of the most powerful leaders in the country privately condone it.
Minister of State Matthew Rukikaire resigned from government because he didn't live with the lie any more, and Katureebe's conscience is also reported to have caught up with him, as he felt that one could no longer be an Attorney General of Uganda without being a first class crook.
For all this, the UCB scam represents just the tip of the iceberg of the rot that went on in regard to its privatization, and other sales of public enterprises. It seems we are not too far away from the Dracula being in charge of the Uganda blood bank (Treasury) in Uganda. All democrats and people of goodwill must wake up and reclaim the country from the ruin of corruption.



Kiggundu on fresh trial over Greenland

by P. Matsiko wa Mucoori, The Monitor, Uganda
KAMPALA, 7 January 2002

Former Managing Director of the defunct Greenland Bank, Dr. Sulaiman Kiggundu, will today appear in Buganda Road Chief Magistrate’s Court for a fresh trial on charges of causing financial loss to his employer in 1998.

The retrial begins this morning before Buganda Road Chief Magistrate, Frank Othiembi. This means that all the evidence adduced in the previous trial proceedings will be disregarded in the retrial. The magistrate will rely on fresh evidence.
Othiembi stopped Kiggundu’s trial last year when prosecutor Senior Principal State Attorney, Simon Byabakama, raised a point of law that three magistrates cannot not try one case in succession under the Ugandan laws.
Kiggundu had started giving his defence submissions when Byabakama raised the issue. The case had been previously handled by two magistrates and at the time the trial was stopped, it had been referred to a third one.
Kiggundu is represented by counsel, Caleb Alaka and Elias Lukwago.

Greenland sale is fraud - Kiggundu
By Siraje K.Lubwama

Former Greenland Bank managing director Sulaiman Kiggundu yesterday said the sale of Greenland Towers was fraudulent.
The 8-year-old 11-story building on Kampala Road was sold Friday to Hilton Insurance Services at $4m (Sh7.4b).
The building was co-owned by Greenland Bank and FIBA, its associated company that owned 75 percent.
“I have never at any one time mortgaged this building to Bank of Uganda as it is claimed, that building has been sold under a mortgage,” Dr. Kiggundu said.
He issued a statement from Luzira Prison where he is serving a six-month sentence for defaulting on a Shs 600m loan.
Kiggundu said that though in November 1998 he applied for a Shs 10bn loan security from Bank of Uganda to support “our clearing account” and indicated that he would give their building (Greenland Towers) as security, BOU never gave them the said money but instead took over the bank on Dec. 5.
Kiggundu, who is scheduled to finish his sentence Dec. 15, said that his imprisonment was pre-planned to put him out of the way so that this “fraudulent sale of our family silverware” can take place.
“Whereas four Banks were closed, no other Managing Director except me was detained and charged. Whereas TransAfrica bank is said to have lent Sh3b out of its deposit base of Sh 6b, the Managing Director was never arrested and charged as in my case and the Bank has not been closed, instead it has been merged with Orient Bank,” Kiggundu wrote.



Monday, July 8, 2002

Can't Pay, Won't Pay: Kiggundu In Civil Jail


Blaming politics for his troubles, Dr Sulaiman Kiggundu insists he does not deserve the six months' civil jail term he is serving. The 56-year-old former governor of the Bank of Uganda, was imprisoned for allegedly squandering depositors' money when he was managing director of the now defunct Greenland Bank.

He does say that he 'regrets' some of the loans he gave out, and admits that is what might have got him into trouble. He helped found Greenland Bank in 1995, one of the four commercial banks closed during the financial crisis of 1998 and 1999. At the time, it had the third largest depositor base in the country.

There was a mixed reaction from the public to Kiggundu's imprisonment and there have even been suggestions in some quarters of organising a fundraising to come up with the Ush650 million ($370,000) which the Bank of Uganda (BoU) wants him to pay.

"Where will the people get the money to bail me out with this level of poverty in the country?" he says when asked about this. He says he is determined to go through with his tribulations, including the jail term at Luzira Prison, on the outskirts of Kampala.

Kiggundu was at one time one of the leading property moguls in the region. The Greenland Group, which he founded and headed, had property throughout the country, ranging from a bank to a university, Kampala International University. Some of these properties have been since sold off to recover money the Greenland Bank owes Bank of Uganda. 

The High Court Commercial Division registrar, Precious Ngabirano, on June 27 committed Kiggundu to civil prison for failure to pay over the $370,000 he owes Greenland Bank.

The insolvent Greenland Bank was liquidated by the central bank in 1999 and in turn it dragged Kiggundu to court, demanding his imprisonment if he could not give satisfactory reasons for not paying the money he obtained as loans when he was still managing director.

Ngabirano also ordered the Bank of Uganda, liquidators of the Greenland Bank, to pay up to Ush360,000 ($205) for Kiggundu's maintenance for six months at a rate of Ush2,000 ($1.1) per day. 

May Kiggundu, speaking to The EastAfrican last week at her home in Naguru on the outskirts of Kampala, said the family had come to terms with the imprisonment and is happy. "We are not sad because we know why Dr Kiggundu is in prison; it is just politics," she said. 

Who is Sulaiman Kiggundu? He started his education in his home village of Butambala before joining the prestigious Kings' College Buddo. Those who knew him then say he was once expelled from school in 1957 for joining a protest over the exiling of the king of Buganda, Sir Edward Muteesa II, by the British colonialists. 

Kiggundu joined Makerere University before leaving the country for further studies in Europe. During the turbulent 1980s, he was in Kenya lecturing at the University of Nairobi, only to return when Museveni became president. He became the governor of the central bank, a post he held for four years (1986-1990).

Kiggundu holds a BA in economics from Makerere University, a Master of Science in Development economics from Strathclyde University (UK), a Master of Arts in Mathematical economics and a Doctorate in economics from Boston University.

Before he was sent to Luzira Prison, the court had asked Kiggundu if he had any concrete proposals on how to settle the debt and the taxed costs of Ush8,009,746 (about $4500) that arose out of the civil suit which BoU won against him.

Kiggundu replied that, because he has been unemployed since his dismissal as the bank's managing director in 1998 and the case had dragged on for four years, ordering him to pay the amount in a lump sum was like telling him to swim with his hands and legs tied. He added that he could not even mobilise funds from his many friends abroad because his passport was confiscated when the case started.
Recently, I visited him at the prison. We were ushered into the office of one of the prison supervisors, and shortly thereafter Dr Sulaiman Kiggundu walked in. He's not changed much apart from having lost a little weight. Happy? Yes, he is, perhaps because he has seen May. But when he starts talking he is a bitter man. "How am I supposed to pay a loan that has accrued over Ush100 million ($57,142) of interest when am not working, my assets have been sold and my passport confiscated?" he asks. 

Kiggundu says the one key witness who would have given the court useful information, Charles Kikonyogo, the immediate former governor of the BoU, died before he could testify. 




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